Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Colorado Brewery Insurance
Colorado Brewery Insurance. Breweries are coming on the scene every year, and beer drinkers are getting more variety in the type of beer they can have. For beer drinkers, this is good news because now they can have the perfect brew to go with anything they want. Right now there are over 2300 breweries in the U.S. Even with this high number each brewery is different. If you're the owner of a brewery, then you must do everything in your power to protect your business. The way to do this is to get the right Colorado brewery insurance for your business.
Breweries produce beer and beer products from grain that has been ground or milled, boiled, filtered, fermented, and aged. The final product is packaged, usually in glass or metal containers, labeled, and stored or distributed to retailers and concessionaires. Operations may include a number of warehouses for storage of finished goods. Smaller breweries ("microbreweries," "brewpubs," or "craft brewers") may have a retail store selling directly to the general public or facilities for on-premises consumption, such as a full-service restaurant.
Colorado brewery insurance protects your brewing company from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Manufacturing Risks In The Brewing Process
There are many risks involved in the production of beer. For you to get the best insurance for your CO brewery, the first thing you must consider is - the type of brewery you operate. You must take into considerating if you'll be offering a tasting room, pub or restaurant. Whatever it is you should be thinking about it when choosing your Colorado brewery insurance coverage. In any business, the things that happen that you didn't prepare for can bankrupt your business without the proper coverage.
Brewery Insurance Policies
Running brewing company operation puts you at the many risks that come with it. The last thing you want happening is your business suffering because you didn't take action to protect it.
Here are some insurance plans you can consider for your business:
Business property coverage: This type of Colorado brewery insurance protects the building and the contents in them which you may be using to operate your business. With the unpredictable happening in life such as fire, inclement weather, and theft your business could face lots of damage. Having this type of insurance keeps your business covered.
Another thing you must ensure is that your business property policy includes coverage for business interruption. If you ever have to relocate, or can't operate this insurance pays for lost income and other expenses.
Commercial auto insurance: Having this type of insurance plan in place protects the vehicles you use in the operation of your business. Also, you can get hired or non-owned vehicle insurance if your employees use their personal vehicles for business reasons.
Employment practices liability: This type of coverage keeps you covered if your company is sued by an employee who claims that you are involved in discriminatory employment activity.
Crime coverage: with this type of insurance your business is protected if an employee or a group of employees engages in theft while working for you.
Workers Compensation: This coverage is a very important part of your insurance coverage. Without it, you won't be able to operate in most states if you have any non-owner employees. Having this coverage for your business will help if an employee is hurt while on the job. If an employee is injured and needs medical attention because you have this coverage, all expenses are covered.
Cyber liability insurance: If you don't take the time to secure your business network properly then you could risk a breach of information on your network. If a cyber breach ever happens in your business, this is the type of protection to keep you covered.
Other Insurance Polices To Consider
Tank collapse coverage: If a tank collapses this insurance will cover all expenses as a result of the collapse.
Restaurant property coverage: If a restaurant is a part of your brewing business this insurance keeps the equipment you use in your restaurant covered.
CO Breweries' Risks & Exposures
Property exposure is high. Ignition sources include electrical wiring, heating and air conditioning systems, production equipment and machinery, and refrigeration/cooling equipment. Combustibles include the fuel sources for the equipment or machinery used in processing, dust from grain that can explode, finished alcoholic products, and packaging materials. All machinery must be inspected and maintained regularly to avoid wear and tear or overheating losses. Wiring must be up to date and of sufficient capacity. All machinery should be grounded to prevent static buildup and discharge.
There should be adequate ventilation systems in place to prevent dust from grains from building up and spontaneously combusting. Due to its combustibility, an ammonia detection system should be in place if ammonia is used as a refrigerant. With any food product, even a small fire loss can be significant as state, local or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, heat or water.
Procedures for recycling and for cleaning and sterilizing bottles should be in place. Separation of raw material, processing, and final product are important in controlling the exposure to fire loss. Business income exposure may be high due to the use of specialized machinery and equipment that may be difficult to repair or replace quickly.
Equipment breakdown exposure is high due to the automated machinery and equipment which can malfunction or break down. All machinery and equipment must be regularly inspected and maintained as a lengthy breakdown to brewery machinery could result in severe loss, both direct and under time element. If there are boilers, operational safety valves must be in place.
Premises liability exposure is light if visitor access is limited. If tours are given, the brewer should meet all life safety codes to assure visitor safety, especially from exploding containers. Good housekeeping and nonslip flooring finishes are critical to minimize slips and falls. Spills of liquids should be promptly cleaned up and warning signs posted. Exits should be clearly marked and free of obstacles. Adequate interior and exterior lighting should be available in the event of a power outage.
Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level. Premises liquor liability hazards will increase if samples are handed out. The off-premises exposure is high if delivery drivers stock shelves for customers. Contractual liability may be a concern if there is a sidetrack agreement.
Liquor liability exposure is limited unless alcohol is served or sold on premises. If tours are conducted, alcohol must be given or sold only to those who can prove they are of legal age. Employees must be trained not to serve alcoholic beverages to those who are intoxicated.
Products exposures are moderate due to the possibility of contamination, spoilage, foreign objects in containers, or explosion from a pressurized canister. Raw materials may be imported from foreign countries. Incoming materials should be inspected before accepted. The workplace must meet all FDA specifications for sanitary working conditions and be arranged to prevent foreign substances from entering the processing area. An on-site testing laboratory is recommended to verify quality control.
Pest control and the chemical applications used are key processes to evaluate. Stock dating and rotation are important factors. If by-products of the brewing operation are sold elsewhere, such as brewer's yeast, grain for feed and vitamins, or carbon dioxide, the additional products hazards must be checked carefully. Warning labels must be in place indicating the potential damage of alcohol to unborn children. An effective recall program must be in place that can be activated immediately.
Environmental impairment exposure is from underground fuel storage, leakage or refrigerants such as ammonia and chlorofluorocarbons, and waste disposal. Storage and waste disposal must comply with all federal and state requirements. Outside contractors should remove waste from the site on a regular basis. If wastewater is discharged into public waterways, a permit must be obtained from the EPA. The presence of underground storage tanks usually means that a UST policy must be purchased.
Workers compensation exposure can result from burns caused by the cooking process or machinery and equipment, cuts or accidental dismemberment from rotating blades or moving parts on machinery, back injuries or hernias from lifting, foreign objects in the eye, and slips and falls from inadequate housekeeping in processing areas. All machinery must be properly guarded. Employees may be exposed to chemicals or excessive noise.
Adequate safety equipment should be required for employees in processing areas. Forklifts should be equipped with backup alarms and be refueled in well-ventilated areas. As with products liability exposure, there is potential injury to workers from exploding pressurized containers, or other injury from major explosions in the workplace.
Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers. Controls must be in place to maintain, check, and prevent such injury. Employees delivering goods to customers can be injured in vehicle accidents or during robberies.
Crime exposure is employee dishonesty of both inventory and money. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that there are checks and balances. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Regular audits by an outside firm should be conducted. Loading docks should be supervised to minimize employee theft of finished goods. If drivers pick up checks or accept any money, there is both an employee dishonesty and theft of money and securities concern. Receipts should be issued for any cash payments received.
Inland marine exposure comes from accounts receivable if the brewer bills customers, computers (which may include computer-run production equipment), contractors' equipment for forklifts, goods in transit, and valuable papers and records. Finished products are transported on company-owned trucks. Any overturn or collision could cause a total loss due to the fragility glass containers and the possibility of contamination.
All loads must be secured to prevent shifting during transport. Valuable papers and records include proprietary formulas, inventory records, customer files, and contracts with suppliers and distributors.
Commercial auto exposures are usually significant as delivery is an ongoing part of the operation. Deliveries may be made in darkness, during inclement weather, or on small roads or streets where there is little margin of error. Drivers should be assigned to routes to increase their familiarity with traffic patterns. Because many deliveries are made to grocery stores, drivers must be trained to be aware of the presence of children around and behind the vehicles.
Drivers must have a commercial license and acceptable MVRs. Random drug checks should be conducted. For long-haul deliveries, drivers may not exceed DOT standards for the number of hours worked per day and per week. If containers of anhydrous ammonia are being transported, they must be secured in the cargo area to prevent asphyxiating the driver due to leakage. All vehicles must be well maintained with records kept in a central location.
Brewing Company Coverage
When you own a business, the first concern is the safety of that business. In brewing, many things can go wrong, but you always want to ensure you are safe. If there is something that goes wrong in your business and you do not have the right insurance in place, you could lose everything. You don't have to risk losing everything by a lawsuit choose to protect your business today and get the right insurance coverage plan.
Colorado Economic Data & Business Insurance Information
If you're thinking about doing business in Colorado, it's important to familiarize yourself with the economic status of the state, as well as the regulations and limits regarding insurance for businesses. Below, we offer insight into pertinent economic data related to the state of Colorado, as well as key business insurance information so that you can put your best foot forward and make the best decisions for your business in the Centennial State.
Business Economic Trends In The State Of Colorado
According to recent reports from the leading economic researchers, the state of Colorado has a healthy outlook, economically speaking. While fewer jobs will be added in 2018 than have been in recent years, the growth rate is still expected to climb.
It's anticipated that entrepreneurs who are really interested in taking risks in new ventures will be the leading contributors for the state's economic growth. However, less risky industries will lend to the economy, as well, such as cloud computing and cybersecurity.
In regard to the fuel industry, it is anticipate that there will be an increase in valuation of about 9 percent in the year 2018, and this growth pertains mainly to gas and oil. This increase will largely be due to the improvement in energy prices, which are lower this year than they have been in recent years. It's hopeful that energy prices will continue to fall so that these industries can continue to thrive.
In terms of agriculture, it's projected that farms in the state of Colorado will do a little better this year than they did in 2017. Leading economic research agencies are expecting that the income from agriculture will reach nearly $1.4 billion in 2019.
In regard to the retail market, it is also expected that this industry will see steady growth, despite the rising trend of e-commerce solutions. In fact, it's estimated that the rate of employment in the retail sector will increase by as much as 2.1 percent during the 2019 fiscal year.
Regulations And Limits For CO Commercial Insurance
The Colorado Division of Insurance regulates insurance in Colorado. CO is considered a "fault state", meaning that business owners are not legally required to carry liability insurance; however, liability coverage is the type of commercial insurance that is most commonly purchased in the state. Commercial liability insurance covers business owners and their clients for things like bodily and personal injury, commercial property damage, and injuries that pertain to advertising injuries.
The only commercial insurance that business owners are required to carry is workers' compensation insurance. Any business that employees an hourly or wage staff must carry this type of coverage to protect their employees.
Additional Resources For Food Service Insurance
Learn about restaurants, bars, liquor stores commercial insurance coverages. See how small business food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.
- Bagel Shop
- Coffee Shop
- Concession Stand
- Grocery Store
- Liquor Liability
- Liquor Store
Bars, taverns, restaurants, cafeterias, and other eating and drinking places have significant insurance needs in three separate areas.
The first is property protection for physical damage to equipment, furnishings, building and supplies due to fire and other perils.
The second is premises liability coverage to protect customers due to slips, trips and falls on the premises, as well as for consumption of food products.
The final need is protection for employees due to frequent cuts, burns and other common employee injuries. Establishments that sell or serve liquor or other alcoholic beverages also need liquor liability coverage.
Slips and falls, along with customer illness due to being served tainted food or drink, are the primary liability exposures. The commercial general liability (CGL) is used to provide coverage for these exposures.
It is important to note that liquor liability coverage is excluded under the CGL form if a risk is in the business of serving alcoholic beverages. Many establishments in this category should therefore consider purchasing a separate liquor liability coverage form.
Restaurant kitchen equipment, inventory and dining room fixtures are common exposures for most eating and drinking places. Many of these establishments do not own the buildings they occupy but have long-term leases and have invested money in various improvements and betterments, including cooking equipment, dining room decorations and permanent fixtures.
There are major differences in the food service business and the very different exposures they present. There are many specific types of restaurants to cater to individual needs and tastes. There a several main commercial insurance classifications for food service.
Concessionaires: The most basic "eat on the run" type of restaurant is not classified as a restaurant at all but is referred to as a concessionaire. Class Code 11168: Concessionaires applies and the accompanying note states that all food and beverages must be sold through hawking or peddling. There can be no location to which customers walk up and purchase the food. This classification includes food sold at sporting events, exhibitions, and parks.
Caterers: Are very similar to restaurants with significant differences. The caterer prepares the meals at its own kitchen or commissary and then transports it to the locations where it will be served. Some final preparation may take place at the final location but the majority generally takes place at the caterer's location. The caterer's employees serve the meals and beverages and oversee the consumption of the food.
Restaurants: The way restaurants are categorized and classified uses the percentage of alcoholic beverage sales as the first criteria, followed by other features or operations.
Common to all of these categories is that entertainment-oriented venues such as nightclubs, cabarets, dance halls, discotheques, and comedy clubs must be separately classified and rated. This means that the sales that those entertainment activities generate must be broken out and rated separately from the sale or food and drink.
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